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Hired to do trade specific work. I was asked to pull MEP permit for Cannabis facility. Am I now forced to be the GC?

CaliforniaConstruction Contract

I hold a "B" license for General Contractors in California. I was hired by a tenant in Long Beach, CA and signed a contract for $54,000 to install Drywall, Insulation, paint and electric. The contracting company is in New York. They asked if I would pull permits for the job on their behalf. This was asked after we signed the contract and was to be paid separately from our contracted price. Since the permit was for a Cannabis manufacturing facility, I was told that an all inclusive MEP permit had to be pulled. I am now being told that the moment I pulled those permits, I inadvertently became the GC for the job and became fully responsible for the both the HVAC and Plumbing work completed even though they each had separate contracts. We have been waiting months for these contractors to finish so we could complete our share of the contract. The building manager/owner, not sure which, is now telling me that he wants to take over the job. He wants me to sign over the permits in his name and is refusing to pay for work completed and materials provided. We would also lose about $20,000 in upcoming work. He also claims that the Tenant never had a signed authorization from him to complete said renovations. Where does that leave me? I am currently due a draw of $17,000. The owner/manager is refusing to let me complete our contract and the tenant is terrified of him. Did we become the GC by pulling the MEP permits? Can we stop all work on the project at this time since we did pull the permit? What would be the best way to resolve this issue?

2 replies

Mar 1, 2023

If you are working for the owner or tenant as a "B" license holder, you are a general contractor, as opposed to a sub, but that is not the issue in my mind. You contracted for a specific scope of work, that is, "$54,000 to install Drywall, Insulation, paint and electric". If you haven't provided a bid that was accepted for any other work, the fact that you pulled the permit for MEP work does not necessarily mean you are obligated to do it. You defineitly need to talk to a construction lawyer, but without knowing more, if I was you, I would get the permit, for MEP, out of your company's name. As for work you've done to date, if you are not paid, lien the property and then file suit within 90 days of recording your lien. I am assuming no Notice of Non-Responsibility was posted on the job. Feel free to call me to discuss, ifyou wish. I handle cases in LA regularly.

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